Range bound trading is fading.
Have no bias, and anticipate a fake out.
Timing is everything.
The next image shows how to find the Boogie hump – since these are not waves.
Once you found your hump 2 and hump 4 hooks, you know that you are in the Boogie leg. This is where you close the previous direction and roll into the opposite one.
As you can see, sometimes there is a second peak, mostly for 4-s, but sometimes for 2-s as well, what makes an echo-like peak a suspect is the close proximity in time.
On the way up the 4 would reach lower than the 2 and the opposite goes for the downside.
On the picture above you can say that you are in a hump 3 to the upside since a #4 hasn’t printed yet. You could also say that the market is potentially printing an inverted ABC.
So, let’s talk about another signal for catching a turn: the inverse ABC.
On RSI2, of course.
The inverted ABC (in black) comes from the oversold / overbought area and the C leg would fall short from the RSI starting point of A.
For exit you can utilize the nearest Peak (Oil) or one of the Boogie humps – that may or may not coincide.
My current range limits are the Ilford Towers.